E2E Networks (E2E) Q2 25/26 earnings summary

Executive summary

• Achieved significant progress with two large IndiaAI Mission orders (INR 88 crore and INR 107 crore), expected to go live soon, supporting LLM training for major institutions and organizations.

• Provides end-to-end cloud infrastructure and support, including high-performance cloud and storage solutions, across multiple countries via four data centers in India.

• Robust demand for cloud computing and AI infrastructure, with strong capacity utilization and expansion plans underway.

• Ongoing acquisition of AddressLab/SilverTap assets and pending completion of Jarvis Labs AI Private Limited asset acquisition to enhance global customer delivery and strengthen technical talent.

• Focus on building sovereign, homegrown technology and maintaining data sovereignty for Indian customers.

Financial highlights

• Q2 FY26 revenue reached INR 50.8 crore (INR 438 Mn), up 21% sequentially from Q1 FY26 but down 7.9% year-over-year.

• EBITDA margin improved to 41% from 29% in the previous quarter, with EBITDA for Q2FY26 at INR 180 Mn, up 71.2% sequentially.

• Net loss of INR 13.5 crore (INR 135 Mn), primarily due to increased depreciation from new capacity and higher expenses.

• Diluted EPS for Q2FY26 was INR -6.64.

• Capex for Q2FY26 was INR 491 Mn, with significant GPU deployment in May and August 2025.

Outlook and guidance

• Confident in achieving monthly run rate guidance of INR 15–20 crore, with potential to reach targets before March 2026 due to imminent IndiaAI Mission orders.

• Targeting 80–90% utilization of current infrastructure by March, up from 35–40% in the previous quarter.

• Plans to capitalize on AI growth, expand GPU infrastructure, and strengthen participation in India's AI mission.

• Members approved a special resolution via postal ballot to raise funds through equity shares or other eligible securities.

• EBITDA margin guidance maintained at 26%+ for the overall company.